Elon Musk's xAI and X to Repay $17.5 Billion in Debt Early

Mar 4, 2026
Elon Musk’s companies X and xAI plan to repay about $17.5 billion in debt in full, according to Bloomberg, with Morgan Stanley informing lenders of the move. The repayment comes shortly after SpaceX acquired xAI and ahead of a potential SpaceX IPO.

Elon Musk’s social media platform X and his artificial intelligence company xAI plan to repay about $17.5 billion in debt in full, reports Reuters, citing Bloomberg. Morgan Stanley, which manages the debt for both companies, has informed lenders that the firms intend to pay back everything they owe.

The repayment includes roughly $12 billion tied to X and $5 billion borrowed by xAI through bonds and loans. Some of xAI’s $3 billion in high-yield bonds will be redeemed at a premium of about 117 cents on the dollar. The companies have not disclosed the source of the repayment funds.

The move follows a series of corporate changes involving Musk’s businesses. SpaceX acquired xAI in February in a deal valuing the AI company at $250 billion, giving it greater flexibility to restructure its finances. xAI had previously acquired X in 2025, inheriting the social media company’s debt in the process.

Morgan Stanley declined to comment, and representatives for X and xAI did not respond to requests for comment.

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